IFC to lend Rs 337.5 cr to Gujarat State Petronet Ltd
In a major boost to the natural gas sector IFC has agreed to provide financing to Gujarat State Petronet Ltd for the expansion of its natural gas transmission network in Gujarat, reports Deepak Joshi.business Updated: Aug 27, 2007 23:30 IST
In a major boost to the natural gas sector, International Finance Corporation (IFC), the private sector investment arm of the World Bank, has agreed to provide financing to Gujarat State Petronet Ltd for the expansion of its natural gas transmission network in Gujarat.
IFC’s financing to Gujarat State Petronet Limited includes a loan of Rs. 337.5 crore and equity of up to $30 million (approximately Rs 122 crore). The company, the country’s second-largest natural gas transmission firm, is the only one that transports gas on behalf of third-party shippers. Its gas transmission network spans 1,080 kilometres, and discussions are underway to expand it by 800 kilometres over the next three years.
“We welcome IFC’s support, which will help make us a strong player in gas transmission in western India. Our company will continue its vision to provide cleaner and more efficient fuel to the power, fertiliser, and other industrial sectors, as well as to transport and domestic users in Gujarat,” D Rajagopalan, chairman of Gujarat State Petronet Ltd said.